HOA

Started by AnthonyA1 • 3 replies • 1343 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

AnthonyA1 (Georgia)
Posts: 1

Posted:

Our subdivision is in three sections. One section is called the Estates I (9 homes);state 2 (3 homes with several undeveloped plots, and the Manor (25 homes) with 25 undeveloped plots. The developer had a HOA when the subdivision was build in 2004. Since then the developer went bankrupt and the HOA basically is nonexistent.

Homes in Estate 1 have swimming pools, but Estate 2 and the Manor do not. The developer was scheduled to build a clubhouse and swimming pool for those sections, but did not. We have tried on a number of occasions to get together, but attempts have proven to be difficult.

The residents in Estate 1 would like to start our own HOA to manage our section. Advise if you are aware of how to proceed with starting new HOA.

Thanks

NpS (Pennsylvania)
Posts: 4,216

Posted:

Welcome Anthony.

If the HOA was formed in 2004, it may still exist today. The developer's bankruptcy does not terminate the HOA.

First thing you should do is check what documents the developer recorded at the Registry of Deeds. Usually involves a Plat plus Deed Restrictions. If neither exists, you probably don't have a HOA. If both exist, you probably do.

Read the deed restrictions. They establish rights and responsibilities. There could be one for each subdivision and one that covers all subdivisions.

In addition to Deed Restrictions, there should be Bylaws - which your state may require to be recorded also. Check.

Read your docs. Find out what events trigger the transfer of control of the HOA from the developer to the owners.

It might be easy or difficult to get your HOA kick started. The answers can usually be found in the docs.

Sikubali jukumu. Read all posts at your own risk.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Forgot to mention. Let us know what you find. Posters here will try to help you sort things out once you've got a bit more background info.

Sikubali jukumu. Read all posts at your own risk.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Anthony,

As NP pointed out, the fact that the Association isn't active or that the Corporation (perhaps known as Association Inc.) has been administratively dissolved by the State does not abolish the actual Association. It's the deed restrictions that actually create (authorize) the Association.

As the deed restrictions (CC&Rs) are what create Associations, you will need to gather enough support from all 3 sections to amend the existing deed restrictions to remove your section from one Association and create another.

Since you identify a number of vacant lots, I suspect that you will need to discover who currently owns the vacant lots, as that will likely be the new Declarant. The Declarant will likely hold enough votes (from all sections) to amend the deed restrictions. It's also possible that without the Declarant, you will not have enough votes to make this happen.

If you do not have enough votes, you may petition the court to make the changes.
For this, you will need to consult with a local attorney.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here